Amendment on Earlier Release

Aequus Provides General Update and First Quarter 2020 Financial Highlights

VANCOUVER, British Columbia, June 01, 2020 (GLOBE NEWSWIRE) -- Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, today reported financial results for the three months ended March 31, 2020 (“First Quarter 2020”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

"Today the Company reported record quarterly revenues of $579,450 for Q1 2020, a 76% increase in revenues compared to Q1 2019,” said Doug Janzen, Chairman and CEO of Aequus. “We ended 2019 with strong sales momentum and are pleased to report a record quarter in Q1 2020, almost doubling revenues over the same period 12 months ago. The revenue growth was primarily due to increases in market access and generally higher sales volume. We also have progressed our launch plans for the Evolve line up of dry eye products and are on track to launch once a final audit certificate is issued and an approval is granted by Health Canada.”

Operational Highlights

Revenues in First Quarter 2020 were $579,450, an increase of 76% compared to revenue of $328,996 recognized in the three months ended March 31, 2019 (“First Quarter 2019”). The increases can be attributed to increased product acceptance in certain provinces which occurred during the last quarter of 2019. 

In Q1 2020, the Company reduced research and marketing expenses as it continues to focus current efforts on growing commercial revenues. Responding to the inaccessibility of customers due to COVID-19, the Company saw a reduction in sales and marketing expenses with field representatives not able to travel to see customers in person as of the beginning of March 2020. As our promoted products treat chronic conditions, this temporary reduction in customer interactions is not expected to have a significant impact on revenues.

The Company reported a loss of $405,815 for First Quarter 2020, a decrease of 44% from the loss of $730,215 in First Quarter 2019.  The lower loss was primarily due to higher sales and an overall decrease in expenses. The improvement in loss was offset by $163,386 in combined interest and accretion expenses recognized in general administration expenses which related to the debenture issued May 2, 2019. Whereas, the Company did not recognize any similar debenture related expenses during First Quarter 2019.